Contact
Careers
NewsWe strive to realize a carbon-free society and our Environmental Philosophy through our business activities and the actions of our employees.
Care of the Environment
Environmental Philosophy
In its business activities and the actions of its employees, Nihon Kohden works towards the conservation and qualitative improvement of the earth’s priceless environment so that all people can enjoy a healthy environment.
Established: September 1, 2015
Environmental Policy
Based on its Management Philosophy and the Environmental Philosophy, Nihon Kohden will continuously improve its environmental management systems to enhance its environmental performance. The environmental policies are as follows:
1. Provide environmentally friendly products
In carrying out development, manufacturing, marketing, after sales service, and support for medical electronic devices, we provide environmentally friendly products and services. we contribute to reduction of greenhouse gas emissions and sustainable use of limited resources by realizing energy and resource savings, and eliminating the use of hazardous substances throughout the product life cycle.
2. Promote energy conservation and reduction of waste in business activities
In all of our business activities, we continually work together with our supply chain to introduce low-carbon and high-efficiency technologies, and improvement activities, strive to promote energy conservation, reduce waste through the 3R’s of reduce/reuse/recycle, reduce greenhouse gas emissions over the medium- to long-term, and prevent environmental pollution.
3. Comply with environmental laws, regulations, ordinances, and agreements
In all of our business activities, we comply with all laws, regulations, ordinances, and agreements that concern the environment in Japan and overseas, and carry out our responsibilities to stakeholders such as responding to issues such as climate change, water resource protection and conservation of biodiversity as a global company.
4. Promote environmental education
In regard to environmental issues, we promote appropriate education and educational activities to deepen the insight of our employees and stakeholders and enable individual productivity improvements to be linked to environmental improvement activities.
In carrying out development, manufacturing, marketing, after sales service, and support for medical electronic devices, we provide environmentally friendly products and services. we contribute to reduction of greenhouse gas emissions and sustainable use of limited resources by realizing energy and resource savings, and eliminating the use of hazardous substances throughout the product life cycle.
2. Promote energy conservation and reduction of waste in business activities
In all of our business activities, we continually work together with our supply chain to introduce low-carbon and high-efficiency technologies, and improvement activities, strive to promote energy conservation, reduce waste through the 3R’s of reduce/reuse/recycle, reduce greenhouse gas emissions over the medium- to long-term, and prevent environmental pollution.
3. Comply with environmental laws, regulations, ordinances, and agreements
In all of our business activities, we comply with all laws, regulations, ordinances, and agreements that concern the environment in Japan and overseas, and carry out our responsibilities to stakeholders such as responding to issues such as climate change, water resource protection and conservation of biodiversity as a global company.
4. Promote environmental education
In regard to environmental issues, we promote appropriate education and educational activities to deepen the insight of our employees and stakeholders and enable individual productivity improvements to be linked to environmental improvement activities.
Established: April 1, 2017
Medium- to Long-term Environmental Targets: The entire Nihon Kohden Group
Nihon Kohden has set the realization of a carbon-free society as one of material issues for sustainability in its Three-year Business Plan and strengthened its efforts to achieve this goal. In conjunction with the Japanese Government’s declaration that it will pursue carbon neutrality by 2050, we have also set environmental targets for FY2023, FY2030, and FY2050.
| Environmental targets for FY2050 |
● We aim at zero greenhouse gas emissions throughout the entire product life cycle (carbon neutrality by 2050) by reducing greenhouse gas emissions from business activities, providing environmentally friendly products, and cooperating with business partners in the supply chain.
|
|---|---|
| Environmental targets for FY2030 |
● We will set environmental targets for FY2030 based on SBT*1 and take action to achieve them with the aim of realizing carbon neutrality by 2050. (These targets will be revised when the target values based on SBT are finalized.)
(We are aiming at a 46% reduction compared to FY2013 within the scope of ISO 14001 certification.) ● As a response to water resource protection, we will set and achieve targets based on an understanding of water usage of the entire Nihon Kohden Group.
|
| Environmental targets for FY2023 |
● As a response to climate change, the following targets have been set based on material issues and KPIs for sustainability:
(1) Reduce CO2 emissions per unit of sales by 15.2% compared to FY2020. <Target: Scope 1 and 2*2 within the scope of ISO14001 certification> (2) Measure and disclose CO2 emissions for the entire Group by FY2023. <Target: Scope 1, 2, and 3*2> ● As a response to water resource protection, we will work on the effective use of water resources.
|
Established: April 1, 2022
*1: Science Based Targets are greenhouse gas emissions reduction targets set by each company for 5 to 15 years in the future in line with the levels sought under the Paris Agreement.
*2: Scope 1: All direct emissions from the Company’s use of fuel.
Scope 2: Indirect emissions from the use of energy (mainly electricity) produced by other companies.
Scope 3: Other indirect emissions in the Company’s supply chain.
Scope 2: Indirect emissions from the use of energy (mainly electricity) produced by other companies.
Scope 3: Other indirect emissions in the Company’s supply chain.
Environmental Targets for FY2022 <The scope of ISO 14001 Certification Only>
| Environmental targets for FY2022 |
1. Enhance production efficiency and reduce environmental impact by improving operational efficiency
Reduce environmental impact, including energy use, CO2 emissions, and waste emissions generated throughout the product life cycle (Scope 1, 2, and 3), by setting specific targets in line with the operations of each site and division and raising productivity. 2. Reduce environmental impact and prevent pollution in our business activities
2-1. Establish calculation standards in order to achieve third-party certification of CO2 emissions from the provision of environmentally friendly products (Scope 3).
2-2. Promote the development of environmentally friendly products and achieve targets based on product assessment plans and evaluation tables for all newly developed products.
2-3. Reduce defect rates and reduce CO2 emissions in production processes. (Target values are based on environmental targets at the Tomioka and Kawamoto sites.)
2-4. Manage water usage to reduce the volume of water consumed in the production process. (Tomioka site)
3. Continuously reduce energy consumption and CO2 emissions in our business activities to realize a carbon-free society
3-1. In consideration of the decrease in sales forecast for FY2022, limit the year-on-year increase in energy use on a per unit basis and CO2 emissions on a per unit basis to 7.5% and 7.7%, respectively, which targets will be reviewed after the production plan is finalized.
3-2. Collect data on energy use and resource inputs by overseas Group companies and set base data for SBT certification.
4. Contribute to creating a recycling-oriented society
Promote the 3R’s of reduce/reuse/recycle and achieve the following: In consideration of the decrease in sales forecast for FY2022 and the increase in production of some specific consumables such as reagents and electrode pads, limit the year-on-year increase in total waste emissions and waste emissions on a per unit basis to 8.8% and 13.8%, respectively, and achieve a recycling rate of 97.8% or more, which targets will be reviewed after the production plan is finalized. |
|---|
Established: April 1, 2022
ISO 14001 Certification
ISO 14001 certificate
One mark of our progress in this area is ISO 14001 certification for our head office and main production factory in Japan. The ISO 14001 Environmental Management System standard represents the ISO's (International Standards Organization) commitment to support sustainable development by giving companies the tools to assess and control the environmental impact of their activities, products or services.
In line with the principles of the United Nations Global Compact which Nihon Kohden signed in July 2015, we are driving activities to incorporate elements into its environmental targets, including preventative approaches to environmental issues, leadership in taking responsibility for the environment, as well as the development and widespread adoption of environmentally friendly technologies.
- The Tomioka Factory obtained ISO 14001:1996 certification in October 2001, and underwent a transitional review for ISO 14001:2004 in October 2005.
- Our head office and production department were integrated and registered for joint certification in January 2007.
- In 2017, we completed transition to ISO 14001:2015, and underwent expansion inspections at the Advanced Technology Center and the Tomioka Second Factory.
- In 2019, the Asaka Office obtained new certification and joined the Ochiai/Tokorozawa site.
- In January 2022, the Eastern Japan Logistics Center obtained new certification and joined the Ochiai/Tokorozawa site in January 2022.
Currently, we conduct environmental activities at the Ochiai/Tokorozawa Site: head office and development divisions; Tsurugashima Site: distribution of consumables and repair and maintenance of medical electronic equipment; Kawamoto Site: development of consumables and safety/reliability testing of medical electronic equipment; and Tomioka Site: manufacturing and spare parts supply.
The Fujioka Site was closed and related departments were relocated to the Tsurugashima Site and the Tomioka Site in May 2021. We discontinued environmental activities at this site.
In line with the principles of the United Nations Global Compact which Nihon Kohden signed in July 2015, we are driving activities to incorporate elements into its environmental targets, including preventative approaches to environmental issues, leadership in taking responsibility for the environment, as well as the development and widespread adoption of environmentally friendly technologies.
Scope of Application for Environmental Management System
1. Scope of Registration:
Development, manufacture, sales and service (repair and maintenance) of medical electronic equipment and development, manufacture and sales of consumables.
2. Associated Organization:
1) NIHON KOHDEN CORPORATION
1-31-4 Nishiochiai, Shinjuku-ku, Tokyo, Japan
1-1-6 Kusunokidai, Tokorozawa-shi, Saitama, Japan
1-11-2 Kusunokidai, Tokorozawa-shi, Saitama, Japan
1-8-11 Senzui, Asaka-shi, Saitama, Japan
[Development and sales of medical electronic equipment and corporate staff]
[Trial manufacture and manufacture of medical electronic equipment and sales of consumables]
2909-63 Shirakusadai, Fukaya-shi, Saitama, Japan
[Support for maintenance of safety and reliability of medical electronic equipment]
2) NIHON KOHDEN TOMIOKA CORPORATION
486 Nanokaichi, Tomioka-shi, Gunma, Japan
2027-1 Tomioka, Tomioka-shi, Gunma, japan
1-1 Tajino, Tomioka-shi, Gunma, Japan
2909-63 Shirakusadai, Fukaya-shi, Saitama, Japan
[Manufacture of medical electronic equipment and consumables]
3) NIPPON BIO-TEST LABORATORIES INC.
1-8-11 Senzui, Asaka-shi, Saitama, Japan
[Development, production and sale of immunochemistry products and animal blood-derived products]
4) E-STAFF CORPORATION
1-31-4 Nishiochiai, Shinjuku-ku, Tokyo, Japan
[Subcontracting, dispatch of temporary staff, sale of information technology equipment]
5) E-STAFF INSURANCE SERVICES CORPORATION
1-31-4 Nishiochiai, Shinjuku-ku, Tokyo, Japan
[Insurance agency business]
Development, manufacture, sales and service (repair and maintenance) of medical electronic equipment and development, manufacture and sales of consumables.
2. Associated Organization:
1) NIHON KOHDEN CORPORATION
1-31-4 Nishiochiai, Shinjuku-ku, Tokyo, Japan
1-1-6 Kusunokidai, Tokorozawa-shi, Saitama, Japan
1-11-2 Kusunokidai, Tokorozawa-shi, Saitama, Japan
1-8-11 Senzui, Asaka-shi, Saitama, Japan
[Development and sales of medical electronic equipment and corporate staff]
2-1-1 Nishi Inter, Sakado-Shi, Saitama, Japan
[Logistics of medical equipment and consumables, and inspection of consumables]
6-2-20 Fujimi, Turugashima-shi, Saitama, Japan[Trial manufacture and manufacture of medical electronic equipment and sales of consumables]
2909-63 Shirakusadai, Fukaya-shi, Saitama, Japan
[Support for maintenance of safety and reliability of medical electronic equipment]
2) NIHON KOHDEN TOMIOKA CORPORATION
486 Nanokaichi, Tomioka-shi, Gunma, Japan
2027-1 Tomioka, Tomioka-shi, Gunma, japan
1-1 Tajino, Tomioka-shi, Gunma, Japan
2909-63 Shirakusadai, Fukaya-shi, Saitama, Japan
[Manufacture of medical electronic equipment and consumables]
3) NIPPON BIO-TEST LABORATORIES INC.
1-8-11 Senzui, Asaka-shi, Saitama, Japan
[Development, production and sale of immunochemistry products and animal blood-derived products]
4) E-STAFF CORPORATION
1-31-4 Nishiochiai, Shinjuku-ku, Tokyo, Japan
[Subcontracting, dispatch of temporary staff, sale of information technology equipment]
5) E-STAFF INSURANCE SERVICES CORPORATION
1-31-4 Nishiochiai, Shinjuku-ku, Tokyo, Japan
[Insurance agency business]
Environmental Management System (EMS)
Targets and Results of the Environmental Management Program
* Click the image to enlarge.
In-House Environmental Awareness Training Program
Training
Introductory education is held for new employees to facilitate their awareness and understanding of general environmental issues, regulatory and legal compliance, ISO 14001 mechanisms, and the initiatives pursued by Nihon Kohden, as well as our Environmental Philosophy and Environmental Policy, details of targets, specific examples, and the need for full participation of all employees.
Employees working on four sites that have obtained ISO 14001 certification are educated every other year to deepen their awareness of relevant subjects, including changes in the social environment such as law revisions, Nihon Kohden’s Environmental Policy, environmental targets, and the relationship between the activities of each division.
In addition, in order to deepen awareness of environmental issues, we conduct e-learning once a year for all domestic employees.
Awareness Raising Activities
In FY2016, we established an annual Environment Day on June 5 during which we make known to all employees the need for environmental activities.
Introductory education is held for new employees to facilitate their awareness and understanding of general environmental issues, regulatory and legal compliance, ISO 14001 mechanisms, and the initiatives pursued by Nihon Kohden, as well as our Environmental Philosophy and Environmental Policy, details of targets, specific examples, and the need for full participation of all employees.
Employees working on four sites that have obtained ISO 14001 certification are educated every other year to deepen their awareness of relevant subjects, including changes in the social environment such as law revisions, Nihon Kohden’s Environmental Policy, environmental targets, and the relationship between the activities of each division.
In addition, in order to deepen awareness of environmental issues, we conduct e-learning once a year for all domestic employees.
Awareness Raising Activities
In FY2016, we established an annual Environment Day on June 5 during which we make known to all employees the need for environmental activities.
Green Procurement
As part of our efforts to provide eco-conscious products to the market, we promote procurement of parts, materials, and finished products which have a low environmental impact according to the following policy (green procurement).
1. Prioritize purchasing from suppliers conducting ambitious environmental conservation activities while also excelling in areas that include quality, pricing, delivery times, and services
2. Prioritize the purchase of toxic substance-free products
Requests to Our Suppliers
To uphold our green procurement policy, the Nihon Kohden Group asks its suppliers to practice environmental conservation in their business activities and supply products, parts, and materials that have a low environmental impact. We also ask them to provide an RoHS Declaration of Conformity and participate in various surveys.
Supplier-side Environmental Coservation
We ask all our suppliers to take measures for effective environmental conservation such as establishing an environmental policy, maintaining systems, and implementing education.
Supplying Low Environmental Impact Products, Parts, and Materials
To manage the chemicals that are used in our procured products, we request the following.
1. Create a control system for chemical substances used in products
2. Reduce toxic substances and implement green procurement of parts and materials that have low environmental impact
Chemical Substance Content Inspection
To evaluate the chemical substances in procured goods, we request all our suppliers respond to investigations of chemical substances in the goods. We require suppliers to provide certificates of compliance for materials used in RoHS compliant products.
Initiatives for Water Resources
Initiatives for Using Water Resources in Water-stressed Areas
Nihon Kohden has identified water-stressed areas in each region in which the Company operates and evaluated risks accordingly. We utilized the Aqueduct Water Risk Atlas published by the World Resources Institute (WRI) and have confirmed that the following regions are relatively water-stressed areas compared to other regions: The U.S. and Mexico in the Americas, Germany and Italy in Europe, and India, UAE, and South Korea in Asia. Although no water-related issues have occurred in waterstressed areas at this time, we will continue to work on proper and efficient use and safe supply ofwater.
We are currently collecting data at some overseas subsidiaries where we have not been able to obtain actual values.
We are currently collecting data at some overseas subsidiaries where we have not been able to obtain actual values.
Providing Products with Lower Impact on Water Resources
Since the launch of its first hematology product in 1972, Nihon Kohden has developed and marketed hematology analyzers that are compact and easy to use. The latest models currently available provide improved safety, speed, convenience, and accuracy in blood testing. The product maintenance systems have also been improved. In addition, the amount of reagents used for diluting blood during testing and for cleaning the inside of the device has been reduced by approx. 20%* per year, resulting in a reduction in waste fluid discharge.
The MEK-1303 Automated hematology analyzer and clinical chemistry analyzer
* Results of comparison between our latest models; the MEK-1300 series automated hematology analyzers and the MEK-1303 automated hematology analyzer and clinical chemistry analyzer, and conventional models; the MEK-6500 series automated hematology analyzers, with 10 tests performed using each model per day.
Compliance with Laws and Regulations
Nihon Kohden has no serious issues of non-compliance with standards and regulations regarding water, payment of severe fines or penalties for violation of those standards and regulations, nor any serious water leaks.
Disclosure based on TCFD Recommendations
To realize our Management Philosophy that we contribute to the world by fighting disease and improving health with advanced technology, and create a fulfilling life for our employees, Nihon Kohden strives to earn the trust of our customers, shareholders, business partners, and society in all aspects of products, services, technology, financial position, and employee quality.
In recent years, activities aimed at achieving the UN Sustainable Development Goals have been promoted in order to respond to various cross-border social issues. The medical care we are involved in is becoming more and more complex due to various problems such as the aging society in developed countries, rising medical costs, lack of basic medical care in emerging countries, and widening medical disparities.
Under these circumstances, Nihon Kohden defined 12 material issues to be addressed through business and corporate activities. The Company also incorporated these non-financial targets into its three-year business plan, BEACON 2030 Phase I, which started in April 2021, in order to contribute to global social issues and SDGs.
As addressing climate change is one of the most critical social issues facing global society and one of the most significant management issues for us, Nihon Kohden expressed its support for the Task Force on Climate-related Financial Disclosures (TCFD) in May 2022. Nihon Kohden will address climate change with integrity to realize a carbon-free society as stated in our material issues and disclose information in line with the TCFD recommendations.
We aim to realize a sustainable society and increase our corporate value by further strengthening the coordination between our business strategy and sustainability strategy, and creating both economic and social value.
Related press release
July 12, 2022 Notice regarding disclosure of information in line with TCFD recommendations
Sustainability Policy
In recent years, activities aimed at achieving the UN Sustainable Development Goals have been promoted in order to respond to various cross-border social issues. The medical care we are involved in is becoming more and more complex due to various problems such as the aging society in developed countries, rising medical costs, lack of basic medical care in emerging countries, and widening medical disparities.
Under these circumstances, Nihon Kohden defined 12 material issues to be addressed through business and corporate activities. The Company also incorporated these non-financial targets into its three-year business plan, BEACON 2030 Phase I, which started in April 2021, in order to contribute to global social issues and SDGs.
As addressing climate change is one of the most critical social issues facing global society and one of the most significant management issues for us, Nihon Kohden expressed its support for the Task Force on Climate-related Financial Disclosures (TCFD) in May 2022. Nihon Kohden will address climate change with integrity to realize a carbon-free society as stated in our material issues and disclose information in line with the TCFD recommendations.
We aim to realize a sustainable society and increase our corporate value by further strengthening the coordination between our business strategy and sustainability strategy, and creating both economic and social value.
Related press release July 12, 2022 Notice regarding disclosure of information in line with TCFD recommendations
Sustainability PolicyGovernance
To promote sustainability, Nikon Kohden has established the Sustainability Promotion Committee, composed of the president, operating officers, and general managers, and Sustainability Promotion Meeting, composed of the representatives of 17 divisions. In July 2021, Nihon Kohden also established the Advisory Board consisting of four external experts* to incorporate outside perspectives on sustainability activities including measures to address climate change.
The Sustainability Promotion Committee holds a meeting twice a year and formulates the policies and directions including measures on climate change. The president, who is the chairman of the Sustainability Promotion Committee, has the authority to evaluate and manage measures to mitigate climate change, and regularly reports to the Board of Directors about the progress and evaluation of the annual plan. The Board of Directors supervise measures on climate change.The Sustainability Promotion Meeting is held four times a year to establish and promote annual plans based on the policies and directions formulated by the Sustainability Promotion Committee and reports on the progress of those plans to the Sustainability Promotion Committee. Based on its three-year business plan, Nihon Kohden’s management has set KPIs (Key Performance Indicators) related to sustainability and assigned departments for each materiality. Members of the Sustainability Promotion Meeting, who represent the departments in charge of each materiality, report on the progress of sustainability activities and exchange opinions with other members at regular meetings. We strive to implement sustainability activities in its daily business operations, in close coordination with the Compliance Committee, Quality Control Committee, and Environmental Committee. The Advisory Board Meeting is held twice a year to discuss and advise on overall sustainability promotion, including actions on climate change.
Furthermore, in order to raise awareness of the SDGs within the company, we take actions such as educating employees in Japan and overseas through webinars.
* As one of the Advisory Board members was appointed as an outside director in June 2022, the Advisory Board currently consists of three members.
Sustainability Promotion Structure Material issues and KPIs for realizing a carbon-free societyStrategy
To understand the impact of climate change on business activities in Japan and internationally, Nihon Kohden has analyzed risks and opportunities mainly by management and members of the Sustainability Promotion Committee. Based on analysis of a 1.5℃ to 2℃ scenario as well as a 4℃ scenario,* we have identified transitional and physical risks and opportunities over the short-term to FY2023, medium-term to FY2026, and long-term to 2029. We have also examined the business impact and possible countermeasures.
* A 2℃ scenario is to limit the global average temperature increase to 2°C above pre-industrial levels.
A 1.5℃ scenario is to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels.
A 4℃ scenario estimates the global average temperature increase is to 4°C above pre-industrial levels.
A 1.5℃ scenario is to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels.
A 4℃ scenario estimates the global average temperature increase is to 4°C above pre-industrial levels.
Long-term Vision, BEACON 2030| Assumption of each scenario analysis | 1.5℃ to 2℃ scenario | 4℃ scenario |
|---|---|---|
| Society dimensions | We assume that social changes, as part of a global carbon-free initiative which limits the average temperature increase to 1.5 to 2℃, will result in changes in laws and regulations, and technological innovation, affecting our business. | We assume that extreme disasters and infectious diseases will increase and affect our business due to a 4℃ increase in the average temperature, even though the Paris Agreement and various policies to reduce greenhouse gases will be implemented. |
| Reference |
Transition risks: IEA (International Energy Agency): STEPS (The Stated Policies Scenario), NZE (Net Zero Emissions by 2050), SDS (Sustainable Development Scenario)
Physical risks: IPCC (Intergovernmental Panel on Climate Change), SSP2 (Shared Socioeconomic Pathways), RCP4.5, RCP6.0, RCP8.5
(Time period is 2030 to 2050) |
|
- The outlook with a 1.5℃ to 2℃ scenario – Potential impact of climate change on our business
In the medical industry, demand for environmentally friendly products and digital health solutions will increase because of strengthening laws and regulations and increasing customer awareness of the need to realize a carbon-free society. Costs are expected to increase as a result of the need to meet this demand, but further business opportunities are expected if our response is handled properly.
In our analysis of the 1.5°C to 2°C scenario, we made assumptions about how the strengthening of carbon-free policies in each country and region in response to climate change would affect the industries we are involved with. With the development of a carbon-free society, we can expect tighter regulations in each country and region, including carbon taxes and emissions trading. Since our medical equipment manufacturing is mainly assembly line production, we do not emit a large amount of greenhouse gases (GHG) on our own, but our suppliers do emit a certain amount of GHG in their parts manufacturing process. If carbon pricing and environmental labeling, including parts, become mandatory in the future, and the impact of such labeling expands, there is a risk that it will become difficult to provide medical equipment to customers at stable prices. In particular, the intensification of these initiatives in Europe may affect our ability to achieve the 45% overseas sales ratio targeted in our Long-term Vision, BEACON 2030.
In addition, as we work to reduce CO2 emissions, we plan to introduce equipment and technologies using renewable energy and energy conservation, as well as relocate to high-efficiency offices. We expect the corresponding costs to continue to increase. On the business front, we expect an increase in R&D and capital investment to realize digital health solutions with low environmental impact, as well as higher prices for raw materials such as resins used in product housings and restrictions on the use of certain substances. In addition, there is a risk of lost sales opportunities if the development of environmentally friendly products, for which demand is expected to grow in the future, is delayed, or if we are unable to meet the conditions for tender on medical equipment from an environmental perspective.
On the other hand, the increase in the cost of dealing with a carbon-free society is expected to be temporary, and therefore costs are expected to decrease in the long-term perspective. For example, cost reductions from reducing part counts, optimizing components, improving productivity and shortening lead times can all be expected. As one of material issues and KPIs for sustainability, we have set a target of the sales ratio of environmentally friendly products to be 20% or more (cumulative total for three years from FY2021), and are strengthening development of environmentally friendly products. We believe that by expanding our efforts to realize a carbon-free society, we can avoid worsening financing conditions and divestment by financial institutions and investors.
In our analysis of the 1.5°C to 2°C scenario, we made assumptions about how the strengthening of carbon-free policies in each country and region in response to climate change would affect the industries we are involved with. With the development of a carbon-free society, we can expect tighter regulations in each country and region, including carbon taxes and emissions trading. Since our medical equipment manufacturing is mainly assembly line production, we do not emit a large amount of greenhouse gases (GHG) on our own, but our suppliers do emit a certain amount of GHG in their parts manufacturing process. If carbon pricing and environmental labeling, including parts, become mandatory in the future, and the impact of such labeling expands, there is a risk that it will become difficult to provide medical equipment to customers at stable prices. In particular, the intensification of these initiatives in Europe may affect our ability to achieve the 45% overseas sales ratio targeted in our Long-term Vision, BEACON 2030.
In addition, as we work to reduce CO2 emissions, we plan to introduce equipment and technologies using renewable energy and energy conservation, as well as relocate to high-efficiency offices. We expect the corresponding costs to continue to increase. On the business front, we expect an increase in R&D and capital investment to realize digital health solutions with low environmental impact, as well as higher prices for raw materials such as resins used in product housings and restrictions on the use of certain substances. In addition, there is a risk of lost sales opportunities if the development of environmentally friendly products, for which demand is expected to grow in the future, is delayed, or if we are unable to meet the conditions for tender on medical equipment from an environmental perspective.
On the other hand, the increase in the cost of dealing with a carbon-free society is expected to be temporary, and therefore costs are expected to decrease in the long-term perspective. For example, cost reductions from reducing part counts, optimizing components, improving productivity and shortening lead times can all be expected. As one of material issues and KPIs for sustainability, we have set a target of the sales ratio of environmentally friendly products to be 20% or more (cumulative total for three years from FY2021), and are strengthening development of environmentally friendly products. We believe that by expanding our efforts to realize a carbon-free society, we can avoid worsening financing conditions and divestment by financial institutions and investors.
- The outlook with a 4℃ scenario – Potential impact on our business due to climate change
In a society where carbon-free policies are not progressing well and extreme natural disasters are intensifying, it is expected that the healthcare system will need to be strengthened, especially in the areas of disaster medicine and emergency medicine. On the other hand, the procurement of parts, the supply of products, and sales and service activities may be disrupted significantly.
In our analysis of the 4°C scenario, it is assumed that carbon-free policies will not be strengthened in each country and region in response to climate change, average temperatures will continue to rise, and physical risks will increase as natural disasters become more severe.
The Nihon Kohden Group operates its business activities throughout Japan and around the world. In the event of natural disasters and shortage of water or other resources associated with climate change, or the spread of infectious diseases in each region, the procurement of parts, the supply of products, and sales and service activities may be disrupted, which could have a profound impact on the operating results and financial condition of the Nihon Kohden Group.
On the other hand, in the medical field where we provide our products and services, the importance of disaster medicine and emergency medicine is likely to increase even further due to the increase in natural disasters and infectious diseases caused by climate change. Society demands that medical equipment, which is vital to human life, continue to be supplied smoothly and operate stably even in the event of a large-scale disaster. We have contributed to enhancing healthcare systems around the world by providing defibrillators that are robust and durable even in times of disaster, telemetry systems and ventilators that contribute to infection prevention. In recent years, by providing IT system solutions and promoting the Digital Health Solution vision, we have been working to improve productivity in clinical practice and reduce indirect CO2 emissions through the effective use of medical resources.
In our analysis of the 4°C scenario, it is assumed that carbon-free policies will not be strengthened in each country and region in response to climate change, average temperatures will continue to rise, and physical risks will increase as natural disasters become more severe.
The Nihon Kohden Group operates its business activities throughout Japan and around the world. In the event of natural disasters and shortage of water or other resources associated with climate change, or the spread of infectious diseases in each region, the procurement of parts, the supply of products, and sales and service activities may be disrupted, which could have a profound impact on the operating results and financial condition of the Nihon Kohden Group.
On the other hand, in the medical field where we provide our products and services, the importance of disaster medicine and emergency medicine is likely to increase even further due to the increase in natural disasters and infectious diseases caused by climate change. Society demands that medical equipment, which is vital to human life, continue to be supplied smoothly and operate stably even in the event of a large-scale disaster. We have contributed to enhancing healthcare systems around the world by providing defibrillators that are robust and durable even in times of disaster, telemetry systems and ventilators that contribute to infection prevention. In recent years, by providing IT system solutions and promoting the Digital Health Solution vision, we have been working to improve productivity in clinical practice and reduce indirect CO2 emissions through the effective use of medical resources.
* Click the image to enlarge.
Risk Management
For further details on the overall risk management of the Nihon Kohden Group’s operations, please refer to the Strengthening Risk Management page.
A cross-organizational TCFD response project was initiated and has been operated since October 2021 to identify and assess climate change risks affecting the Nihon Kohden Group. Climate change risks and response measures identified in the TCFD response project have been discussed and approved by the Sustainability Promotion Committee and its progress has been managed and reported to the Board of Directors.
Nihon Kohden considers the risk of losses due to interruption operations caused by disasters or accidents and the risk of losses due to occurrence of environmental pollution, etc., caused by insufficiency in reduction of environmental impact or prevention of environmental pollution to be its business risks. In the event of natural disasters and shortages of water or other resources associated with climate change, terrorism, war, or the spread of infectious diseases in each region, the procurement of parts, the supply of products, and sales and service activities may be disrupted, which could have an impact on the operating results and financial condition of the Nihon Kohden Group. We procure raw materials and parts used for our products not only in Japan but also around the world. In the event of a supply issue at a supplier, we take measures, including the consideration of alternative parts, to ensure that the production of our products is not affected. In addition, we have formulated a Business Continuity Plan (BCP) and conduct periodic company-wide education and training to ensure the continued supply of products and services in the event of a large-scale earthquake.
Strengthening Our Risk Management System
A cross-organizational TCFD response project was initiated and has been operated since October 2021 to identify and assess climate change risks affecting the Nihon Kohden Group. Climate change risks and response measures identified in the TCFD response project have been discussed and approved by the Sustainability Promotion Committee and its progress has been managed and reported to the Board of Directors.
Nihon Kohden considers the risk of losses due to interruption operations caused by disasters or accidents and the risk of losses due to occurrence of environmental pollution, etc., caused by insufficiency in reduction of environmental impact or prevention of environmental pollution to be its business risks. In the event of natural disasters and shortages of water or other resources associated with climate change, terrorism, war, or the spread of infectious diseases in each region, the procurement of parts, the supply of products, and sales and service activities may be disrupted, which could have an impact on the operating results and financial condition of the Nihon Kohden Group. We procure raw materials and parts used for our products not only in Japan but also around the world. In the event of a supply issue at a supplier, we take measures, including the consideration of alternative parts, to ensure that the production of our products is not affected. In addition, we have formulated a Business Continuity Plan (BCP) and conduct periodic company-wide education and training to ensure the continued supply of products and services in the event of a large-scale earthquake.
Strengthening Our Risk Management SystemMetrics and Targets
To realize a carbon-free society, which is one of material issues in the environment for sustainability, we set KPIs for CO2 emissions, the number of models of environmentally friendly products and the sales ratio of such products, and the amount of waste from disposal of products and parts.
To reduce CO2 emissions, we have set Medium- to Long-term Environmental Targets and are promoting initiatives to achieve them. Furthermore, as part of our efforts to promote energy conservation in our business activities, we have been gradually switching to renewable energy sources since FY2017, at those of our major offices with high-voltage power contracts; and we aim to switch to 100% renewable energy sources at all of our domestic offices to by 2030.
To address the risk of flooding at our offices and improve energy efficiency, we relocated four domestic offices in FY2021 and plan to relocate 10 domestic offices by FY2023. We will also set the targets and promote to strengthen measures to improve water use efficiency at our production sites.
In addition, as a contribution to society through its business activities, Nihon Kohden focuses on manufacturing environmentally friendly products, such as energy-saving, compact and lightweight products, and aims to achieve a cumulative sales ratio of 20% or more for environmentally friendly products over the next three years. In FY2021, we achieved a sales ratio of 19.9% for environmentally friendly products.
In terms of the amount of waste from disposal of products and parts, we aim at 8% reduction of products and parts retirement in FY2023 compared to FY2020. 21.3% reduction was achieved in FY2021.
We will continue to provide environmentally friendly products and cooperate with business partners in the supply chain to clarify our environmental issues and promote measures through the establishment of SBT targets.
Environmental targets for FY2050, FY2030, and FY2023
Sustainability Data
To reduce CO2 emissions, we have set Medium- to Long-term Environmental Targets and are promoting initiatives to achieve them. Furthermore, as part of our efforts to promote energy conservation in our business activities, we have been gradually switching to renewable energy sources since FY2017, at those of our major offices with high-voltage power contracts; and we aim to switch to 100% renewable energy sources at all of our domestic offices to by 2030.
To address the risk of flooding at our offices and improve energy efficiency, we relocated four domestic offices in FY2021 and plan to relocate 10 domestic offices by FY2023. We will also set the targets and promote to strengthen measures to improve water use efficiency at our production sites.
In addition, as a contribution to society through its business activities, Nihon Kohden focuses on manufacturing environmentally friendly products, such as energy-saving, compact and lightweight products, and aims to achieve a cumulative sales ratio of 20% or more for environmentally friendly products over the next three years. In FY2021, we achieved a sales ratio of 19.9% for environmentally friendly products.
In terms of the amount of waste from disposal of products and parts, we aim at 8% reduction of products and parts retirement in FY2023 compared to FY2020. 21.3% reduction was achieved in FY2021.
We will continue to provide environmentally friendly products and cooperate with business partners in the supply chain to clarify our environmental issues and promote measures through the establishment of SBT targets.
Environmental targets for FY2050, FY2030, and FY2023 Sustainability DataNihon Kohden Environmental Report
We integrated our Environmental Report 2015 into our CSR Report 2015. Please see our Environmental Report before 2014, CSR Report in 2015 and 2016, and Integrated Report from 2017 in the following downloads page.
